The last week or so has been a tumultuous one for Bitcoin. According to recent analysis, the price of Bitcoin has always increased substantially after any dips greater than 20%.
On average, the currency showed 61.5% gains after each substantial dip. This astounding cycle has led to an increased desire among users to purchase Bitcoin during the lows to receive the gains that are to be had when the currency bounces back. The most recent drop caused by the SegWit2x proposal being put on ice appears to be no different. The price fell by more than 20%, but appears to have already recovered to peak in trading at over $6,500.
While most of the industry and community is pleased with the recovery – simply referring to it as a speed bump – others see the amount of power that Bitcoin’s biggest players hold as a potential volatile point for the currency.
Ignoring the associated risks, however, the cryptocurrency market has continued to show that Bitcoin is becoming an asset of genuine value. Huge amounts of Bitcoin are being held in private wallets completely isolated from the market, and some of this will never see the light of day. Bitcoin insiders are pretty confident that the currency will continue on this upward trajectory, but not necessarily indefinitely.
The CEO of Blackmoon Crypto, Oleg Seydak, strongly believes that Bitcoin really is the cryptocurrency market’s answer to gold. The currency forms the biggest store of value within the digital currency market, and this gives it a defensive position in the market’s volatile periods.
What is for sure is that Bitcoin is here to stay. The growth pattern it is experiencing looks like it will continue for some time, however users should always remain careful with their expectations. Nothing can grow with the speed Bitcoin has experienced forever.